2nd round of capital aid to rice retailers unlikely
THE GOVERNMENT is unlikely to implement a second round of capital aid to retailers affected by the imposition of price ceilings on rice, the Department of Social Welfare and Development (DSWD) said on Tuesday.
Reporters at the Palace briefing asked Social Welfare Secretary Rexlon T. Gatchalian about the possibility of a second tranche of aid for small-scale rice retailers, to which he replied that price capping was only a temporary solution to the surge in rice prices.
“The price cap is not meant to last long so that is why we are sticking to that,” Mr. Gatchalian said.
The price cap order, which became effective on Sept. 5, imposes a maximum price of P41 per kilo for regular milled rice and P45 for well-milled rice. The government said the order aims to address a spike in prices, amid alleged hoarding and price manipulation by cartels.
An industry association had said a rice retailer loses around P7,000 a day due to the price ceiling, or around P49,000 a week.
“That is why he (President Ferdinand R. Marcos Jr.) told us earlier when we met to ramp up the distribution of livelihood grants to shore up their capital,” Mr. Gatchalian said, referring to a Cabinet meeting earlier in the day.
He said the government aims to finish the distribution of P15,000 capital assistance to rice retailers by Sept. 14 with a focus on those from highly urbanized cities, in light of the impending election spending ban.
“The President instructed us to finish this at the soonest possible time. He likes the idea of finishing it by the 14th… but we told him that we have applied for an exemption (from the election spending ban) in the eventuality that there’ll be unforeseen circumstances that will cause some delays,” said Mr. Gatchalian.
The DSWD vowed to ensure that those who have not been prioritized will receive the livelihood grant. “That’s the basis of our appeal,” Mr. Gatchalian said of their intention in filing for an election period exception from distributing the aid.
The imposition of price control has been heavily criticized by economists, who said the order could limit the supply of the food staple and lead to black-market trading.
They also emphasized that traders might hesitate to buy rice from farmers, who will be left with no choice but to lower farmgate prices.
Mr. Marcos and his Cabinet officials have said the price cap order is only temporary, but without providing details as to when it will be lifted.
In a television interview on Monday, Trade Secretary Alfredo E. Pascual said the government may lift the price ceiling on rice in two weeks when the local harvest starts, and more imports arrive.
“Within September, we are looking at 2 million metric tons of harvest and entry of some imported rice,” Mr. Pascual said.
Mr. Marcos’ economic team has been eyeing to cut the tariff for rice imports to as low as 0% from 35% to manage market prices. — Kyle Aristophere T. Atienza
